LONDON Nov 5 European stocks edged lower in
cautious trade on Monday as investors opted for safer havens
ahead of the upcoming too-close-to-call presidential election in
the United States.
By 0802 GMT, the FTSEurofirst 300 shed 4.6 points,
or 0.4 percent, to 1,110.59, with investors hedging their bets
after the index rose 1.6 percent last week, nearing the top of
the recent trading range around 1,120.
"Tuesday's U.S. presidential election dominates the week's
events," Ian Williams, strategist at Peel Hunt, said.
"Re-election for Obama may be priced into the markets, as is
some prospect of a compromise to delay the impact of the 'fiscal
cliff'; with the Republicans retaining control of the House -
although the outcome is not yet certain," he said.
Evidence investors were looking for protection ahead of the
election came as the dollar index touched its highest
level since central banks acted to support the global financial
system in early September.
Among equities, food and beverage and healthcare
outperformed broader market falls.